St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1887-01-22
TAXATlON.
Judge Wilson Argues why Certain
Railroad R.azlds Should beTaXed.

Judge wilson Argues Why Certain
Railroad E-az azlds Should be Taxed.
Congressman Thomas Wilson. of Winona,
addressed the senate Judiciary committee
yesterday upon the bill introduced by Sena-
tor Bowen. of Brown, which proposes to
tax all lands apparently, but not really,
held by railroad companies which have
been transferred to other corporations. Mr..
BOWen'S bill is the same as that introduced
by Mr. Wilson i'll the last senate The
by which taxation had been evaded, and
the methods employed by railroad com
panies to thwart legislation.
The Minnesota Construction company, in
stead OF taking deed, accepted mortgage
from the st. Paul & Chicago on 1000 acres
to secure So, 000,000 simply to evade taxation.
In 1883, upon Wilson's resolution, q Joint
committee Of three senators and four repre-
sentatives was appointed to look into the
matter. The railroad men employed such
lobbying methods that the committee got to-
getner once for about five minutes, but never
could be brought together after that. A
minority Of the committee made a report
which was finally lost sight of.
The point is, if the Minnesota Construction
company possesses the mortgage, the mort
gage is personally and should be taxed as
such. If that company owns the lands, then
the realty should be taxed. 1t would be
better to tax the realty than the personally,
for then the settlers and taxpayers in the
locality where the lands are situated would
get the benefit for their pualic improvements
AS the construction company claimed it did
possess the mortgage, it was placed upon the
Ramsey county tax list as personally tax,
amounting in twelve years to about $500, 900.
Upon an appeal the personally taxation case
was dismissed; then the company said it did
not own the realty, so it could not be taxed
for that. Personally can be easily trans
ferred to another state.
AS the matter stands the st. Paul s. Chicago
does not own the land except nominally, and
the construction company, either does own
the land or the mortgage, yet it is exempted
from taxation on both personally and realty.
The St. Paul il Sioux City Railroad COM
pany transferred to the Sioux City Land cor
pOratiOn 400, 900 acres to secure 2.400, coo of
especial stock, as it is called, in reality being
land stock. The holder OF the special stock
has no voice in the management Of the rail-
road company, but he can dispose of this
lard which he holds as q security for his
special stock. Nominally the railroad com :
pany owns the land, and taxation is evaded by
virtue of its land grant; practically the stock
holders own it, and taxation is evaded by the
subterfuge of the especial stock" system. The
object of this special stock, as in the case OF
the st. Paul & Chicago mortgage is simply to
keep the lands in the name OF q railroad COM
pany having land grant privileges so as to
evade taxation. The last senate passed bill
declaring this land taxable, but so much rail-
road lobbying prevented the house from TAX
ing q vote upon it. Now" asked the
speaker, "are you going to permit these lands
to continue to be exempt from taxation? Dc
you think the poor settler out in your frontier
counties, who has purchased a few acres
from one of these land corporations, should
be compelled to pay his own taxes and the
taxes of rich men who are abundantly able to
pay their OWN"
Mr.. Wilson was asked if he thought all
the back taxes should be collected from
1871. He replied in the affirmative. and
also said if he could get his hands upon the
bill now he would strike out its proviso,
which prevents its application to mortgages.
Senator Nelson, of Red Wing. tqulred
if it was proposed to make the poor settlers
who have purchased railroad lands pay all
back taxes. Mr.. Wilson answered that
such was not the intention. 1t seems it
will be necessary to insert proviso eX-
empting settlers from accumulated back
taxation.